State funds: Revenues

uring the early centuries of the Byzantine Empire, the annual revenues of the state amounted to between 7 and 8,000,000 nomismata. In contrast, during the late Byzantine period, revenues were exceptionally low, reflecting the penury of the state. The policy implemented by Andronikos II in 1321, which aimed at the recovery of the economy, resulted in the collecting of a mere 1,000,000 hyperpyra, and even these were debased in value. According to sources of the time, this amount was excessively high.

At the beginning of the late Byzantine period, the revenues of the Empire of Nicaea increased considerably as a result of the economic policy followed by John Vatatzes. After 1261, however, the situation of the state exchequer gradually worsened. The direct revenues from the land were increasingly being re-directed from the state treasury into the hands of the great landowners. The latter managed not only to increase their landed property but also to acquire many privileges, which often included full exemption from taxes, thus allowing them to evade state control.

Even the customs duties, which had constituted an important source of income, were now limited to a bare minimum, since they no longer ended up in the state treasury but made their way mainly to the Italian maritime republics. The fact that, whereas the Genoese customs authorities at Galata collected 200,000 hyperpyra per year, the annual customs revenues of Constantinople only reached the sum of 30,000 hyperpyra, is characteristic. In an effort to encourage more merchant vessels to use the Byzantine port of Constantinople instead of Genoese-held Galata, Andronikos II had recourse to reducing the customs duties from 10% to 2%.

The corrupt practices of tax officials also contributed to the reduction of revenues. But the situation was further aggravated by the civil wars, enemy invasions and plundering raids, as a result of which famers could not cultivate their land and could no longer afford to pay taxes.